Aluminium for the world

Transcription

1 Q IR PRESENTATION

2 Disclaimer This document has been prepared and issued by and is the sole responsibility of Aluminium Bahrain B.S.C. (the Company ). The document is being supplied to you solely for your information and for use at the Company s presentation. No information made available to you in connection with the presentation may be passed on, copied, reproduced, in whole or in part, or otherwise disseminated, directly or indirectly, to any other person. This document and its contents are directed only to the intended audience. It is being made on a confidential basis and is furnished to you solely for your information. By accepting this material the recipient confirms that he or she is a relevant person. This document must not be acted on or relied on by persons who are not relevant persons. Any investment activity to which this document relates is available only to relevant persons and will be engaged in only with relevant persons. If you are not a relevant person you should not attend the presentation and should immediately return any materials relating to it currently in your possession. Forward-looking statements speak only as at the date of this presentation and Aluminium Bahrain B.S.C. expressly disclaims any obligations or undertaking to release any update of, or revisions to, any forward-looking statements in this presentation. No statement in this presentation is intended to be a profit forecast. As a result, you are cautioned not to place any undue reliance on such forward-looking statements. You should not base any behaviour in relation to financial instruments related to the Company s securities or any other securities and investments on such information until after it is made publicly available by the Company or any of their respective advisers. Some of the information is still in draft form and has not been legally verified. The Company, its advisers and each of their respective members, directors, officers and employees are under no obligation to update or keep current information contained in this presentation, to correct any inaccuracies which may become apparent, or to publicly announce the result of any revision to the statements made herein except where they would be required to do so under applicable law, and any opinions expressed in them are subject to change without notice. No representation or warranty, express or implied, is given by the Company, its undertakings or affiliates or directors, officers or any other person as to the fairness, accuracy or completeness of the information or opinions contained in this presentation and no liability whatsoever for any loss howsoever arising from any use of this presentation or its contents otherwise arising in connection therewith is accepted by any such person in relation to such information. 2

3 Contents 1- Industry Highlights 2- Alba Highlights 3- Q Results 4- Industry Perspectives in Alba Priorities 3

4 INDUSTRY HIGHLIGHTS

5 INDUSTRY HIGHLIGHTS Q Aluminium Demand Still Healthy (Reference Period: January - March) World consumption up by 6% YoY Asian demand up by 9% YoY mainly driven by China (+11%), India (+7%) MENA demand up by 5% YoY on the back of large infrastructure spending in Saudi Arabia and Qatar North America - healthy demand (+2%) thanks to new investments in extrusion industry Europe consumption still weak as transportation demand has softened due to falls in production in the mass car market 5

6 INDUSTRY HIGHLIGHTS Q Production Evolution World production up by 5% YoY and is expected to grow in the shortterm with Greenfield projects ramp-up in the Middle East (Ma aden), Malaysia and India Western producers still suffering from current LME prices & high energy costs World market slightly over-supplied (+607 Kt with China and -59 Kt without) 6

7 INDUSTRY HIGHLIGHTS Q LME & Premiums LME inventories at 5.1 million metric tonnes 1Q13 Cash-average was $2,001/t with LME ranging between $1,868 on March 27 and $2,123 on February 15 Physical premiums at record high across the globe: DDP Rotterdam at $287/t vs. $183/t in 1Q12 Major Japanese Ports (MJP) at $243/t vs. $113/t in 1Q12 US Mid West premiums at $255/t vs. $194/t in 1Q12 7

8 ALBA HIGHLIGHTS

9 Alba Highlights Q Operational Highlights/Achievements Alba was able to increase sales by 2.2% on the back of healthy demand of Value-Added products Production up by 3% thanks to a sustained focus on enhanced productivity 1Q13 Sales of Value-Added Products represented 66% of total shipments vs. 62% in 1Q12 Significant uplift in physical premiums on the back of sound physical demand 9

10 Alba Highlights Q Operational Highlights/Achievements Raw Materials 2013 Alumina supply requirements have been secured and Alcoa agreement implemented AlbaSafeWay Program 4,000,000 hours without Lost Time Injury (LTI) milestone Continuous focus on Zero Accidents Principles plant wide Successful completion of $169 million Local Bond Facility Refinancing Future Growth Bankable Feasibility Study (BFS) for Line 6 expansion project in progress 10

11 Alba Highlights Q Financial Key Performance Indicators Adjusted EBITDA up due to strong physical premiums and favorable plant performance despite lower LME prices US$126 million up by 9% YoY Adjusted Net Income up on the back of higher EBITDA levels US$70 million up by 17% YoY Healthy Free-Cash Flow thanks to favorable plant performance and strong working capital management US$71 million up by 48% YoY Dividends Shareholders approved 2012 dividend of US$105 million. The first dividend (interim) of US$53 million was paid in August 2012 and the final dividend of US$52 million was paid in March

12 Q RESULTS

13 Q Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Sales Analysis 1Q13 vs. 1Q12 Higher Overall Sales & Premium Offset by Lower LME Prices 1Q13 vs. 1Q12 - Metal Sales Bridge (US$M) Sales 1Q12 LME Product Mix Pricing Power Volume Sales 1Q13 13

14 Q Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Continuous Shift to Optimum Product Mix Maximize Value-Added Products and Leverage Pricing Power 1Q13 vs. 1Q12 - Sales by Product line Bridge (000 s MT) Premium Above LME Trend US$ Per MT Sales 1Q12 Value Added Liquid Metal Commodity Sales 1Q13 1Q12 1Q13 14

15 Q Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Cost Analysis 1Q13 vs. 1Q12: Lower Raw Material Prices on the Back of Lower LME Levels 1Q13 vs. 1Q12 - Direct Costs Bridge (US$M) Direct Costs 1Q12 RM Price RM Consumption Energy Cons Inventory Ch. Cost Savings One-Off Line 6 Costs Costs Direct Costs 1Q13 15

16 Q Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Strong EBITDA vs. Industry Adjusted EBITDA Margin at 25.3% 1Q13 vs. 1Q12 - EBITDA Bridge (US$M Adjusted) 150 EBITDA 23.2% EBITDA 25.3% EBITDA 1Q12 Metal Sales Direct Cost Derivatives Selling Expenses EBITDA 1Q13 16

17 Q Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Cash Flow Bridge 1Q13 vs. Year-End 2012: Healthy Cash Generation Despite Low LME Prices Q Cash Flow Bridge (US$M) Free Cash Flow (US$M) Balance FY 2012 CF from Operations WC Changes CAPEX Spent Payment to Shareholders Net Debt Service Cash 1Q13 0 1Q12 1Q13 Opera/ng and Inves/ng Cash Flow Trend 17

18 Q Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Improved Management Performance Partially Offset by Lower LME Prices Financial Summary Q Q Sales EBITDA EBITDA% 25.3% 23.2% EBITDA (Excl. One Time Cost) EBITDA% (Excl. One Time Cost) 24.5% 19.2% Net Income/(Loss) Gain/(Loss) Unrealised Derivatives 37 (3) Adjusted Net Income/(Loss)* Adjusted Net Income% 14.1% 12.1% Average Cash LME (US$/MT) 2,001 2,177 * Adjusted Net Income is calculated by taking Net Income less Unrealised Derivatives 18

19 INDUSTRY PERSPECTIVES IN 2013

20 Industry Perspectives in 2013 Demand to Remain Healthy but with Strong Volatility Key factors to be observed: Bullish physical demand despite low LME levels Record physical premiums to be sustained in the short-term on the back of sound physical demand MENA infrastructure spending to continue North America to remain bullish LME price is expected to range between $1,900/t - $2,000/t 20

21 Industry Perspectives in 2013 Raw Materials Price Trends Alumina spot index expected to range slightly higher in 2013 Green Petroleum Coke prices to remain stable in the remainder of 2013 Aluminium Fluoride (ALF3) to increase in the 2nd half of 2013 with production curtailments Liquid Pitch prices expected to slightly increase in the remainder of

22 2013 ALBA PRIORITIES

23 2013 Alba Priorities Continuous Improvement & Preparation for Future Growth AlbaSafeWay Program Towards ZERO Accidents Leverage Strong Physical Demand Conditions Sustained focus on Value-Added Sales Focus on pricing power for 2nd half premium negotiations Enhance Leadership & Management Training Continuous Drive to Increase Creep Capacity with Minimal Capital Investment Line 6 Expansion Bankable Feasibility Study (BFS) under way with expected completion in Q Finalise long-term gas and power contracts 23

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